Education Loan Calculator — Pakistan
Estimate your Pakistan education-loan EMI, accounting for the study-period moratorium. Free, no signup.
HEC need-based scholarships come before any loan
Before borrowing, Pakistani undergraduates should check the Higher Education Commission's Need-Based Scholarship program, which is a grant, not a loan: it is open to students starting or already enrolled in 4–5 year undergraduate programs (including medicine and pharmacy) at HEC-selected public-sector universities, is awarded by each university's own Financial Aid Office based on family financial need, excludes students admitted on a self-finance basis, and currently pays a stipend of Rs. 6,000 per month for the whole program on top of covering the university's allocated tuition share. HEC does not currently run a separate general-purpose interest-free student loan facility alongside this scholarship — its main student-facing financing support is this need-based grant.
Bank student loans and the cost of borrowing
The National Bank of Pakistan (NBP) Students Loan Scheme is one of the few dedicated bank student-loan products still running: it's open to students admitted on merit to approved universities/colleges in specified fields (engineering, medicine, computer science and around a dozen others), who scored at least 70% in their last public exam, and who meet age limits (21 for graduation, 31 for post-graduation, 36 for a PhD). It covers tuition, boarding (not meals) and books, repayment runs up to 10 years from first disbursement, and repayment only starts six months after the borrower's first job or one year after finishing studies, whichever comes first. NBP's own scheme document does not publish a markup rate, so ask your branch for the current rate before applying. For any KIBOR-linked or variable-rate bank loan, remember the State Bank of Pakistan held its policy rate at 11.5% at its September 2026 meeting, so lenders are currently pricing new consumer borrowing against that benchmark rather than the lower rates seen in some earlier years.
What the Prime Minister's Youth Programme actually covers
Search results often surface the Prime Minister's Youth Business & Agriculture Loan Scheme when people look for "PM Youth" student support, but it isn't an education loan: banks offering it (including Sindh Bank and Bank of Punjab, as SBP-panel participants) describe it as subsidized financing for youth-run businesses and agricultural activity, with tiered markup rates (around 7% on larger tranches) and loans up to Rs. 7.5 million for applicants aged 21–45. If you're financing tuition rather than a business, this scheme's own eligibility rules mean it won't apply — HEC's scholarship and a bank's dedicated student-loan product (like NBP's) are the more relevant options.
Moratorium & repayment
- Moratorium (study period): usually no payments, but interest often accrues and is added to the principal.
- Grace period: a few months after course completion before repayment begins.
- Repayment: EMIs over the tenure on the grown balance. The calculator estimates your EMI for a given amount, rate and tenure.
Frequently Asked Questions
How is an education loan EMI calculated in Pakistan?
After the moratorium, EMIs use the reducing-balance formula on the balance (which has grown if interest accrued during study). Enter your loan, rate and tenure in the calculator.
What is a moratorium period?
The time during studies (plus a grace period) when you usually don't make payments. Interest often still accrues and is added to the principal.
What is the typical education loan rate in Pakistan?
As a 2026 reference, rates are around 14% and depend on the lender, scheme, and whether the loan is government-backed or private. Government/subsidized options are usually cheaper.
Should I pay interest during studies?
If you can, paying the interest during the moratorium prevents it from compounding onto your principal, lowering your total cost.
Is the HEC Need-Based Scholarship a loan I have to repay?
No. It's a grant plus a Rs. 6,000/month stipend for eligible undergraduates at HEC-selected public universities, awarded through your university's Financial Aid Office based on financial need — there's nothing to repay.
Does the PM Youth Programme offer a student loan?
Not for tuition. Its Business & Agriculture Loan Scheme finances youth-run businesses and farming activity through banks such as Sindh Bank and Bank of Punjab, not education costs, so it isn't a substitute for a bank student loan or HEC scholarship.
How does the SBP policy rate affect my education loan?
Many Pakistani bank loans price their markup off KIBOR, which tracks the State Bank of Pakistan's policy rate — held at 11.5% as of the September 2026 monetary policy meeting. A higher policy rate generally means a higher markup on a new variable-rate loan.
Related calculators
Sources
- HEC — Need-Based Scholarships eligibility criteria (accessed 24 September 2026)
- National Bank of Pakistan — Students Loan Scheme eligibility and terms (accessed 24 September 2026)
- Sindh Bank — PM Youth Business & Agriculture Loan Scheme (accessed 24 September 2026)
- The Nation — SBP keeps policy rate unchanged at 11.5% (September 2026) (accessed 24 September 2026)